C.H. ROBINSON WORLDWIDE INC (CHRW) Stock Fundamental Analysis
NASDAQ:CHRW - US12541W2098 - Common Stock
125.18 USD
+2.38 (+1.94%)
125.18 USD
0 (0%)
CHRW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 22 industry peers in the Air Freight & Logistics industry. CHRW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CHRW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CHRW had positive earnings in the past year.
CHRW had a positive operating cash flow in the past year.
Each year in the past 5 years CHRW has been profitable.
CHRW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHRW has a Return On Assets of 10.04%. This is amongst the best in the industry. CHRW outperforms 86.36% of its industry peers.
With an excellent Return On Equity value of 29.94%, CHRW belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
CHRW has a better Return On Invested Capital (21.76%) than 90.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHRW is significantly above the industry average of 12.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.04% | ||
| ROE | 29.94% | ||
| ROIC | 21.76% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)23.45%
ROIC(5y)21.78%
1.3 Margins
With a decent Profit Margin value of 3.14%, CHRW is doing good in the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Profit Margin of CHRW has declined.
CHRW has a better Operating Margin (4.88%) than 77.27% of its industry peers.
CHRW's Operating Margin has declined in the last couple of years.
CHRW's Gross Margin of 16.38% is in line compared to the rest of the industry. CHRW outperforms 59.09% of its industry peers.
CHRW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.88% | ||
| PM (TTM) | 3.14% | ||
| GM | 16.38% |
OM growth 3Y-2.93%
OM growth 5Y-3.65%
PM growth 3Y-10.41%
PM growth 5Y-6.96%
GM growth 3Y4.57%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
CHRW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CHRW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CHRW has been reduced compared to 5 years ago.
CHRW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.94 indicates that CHRW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.94, CHRW belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
CHRW has a debt to FCF ratio of 2.15. This is a good value and a sign of high solvency as CHRW would need 2.15 years to pay back of all of its debts.
CHRW's Debt to FCF ratio of 2.15 is amongst the best of the industry. CHRW outperforms 81.82% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that CHRW is somewhat dependend on debt financing.
CHRW has a Debt to Equity ratio (0.53) which is in line with its industry peers.
Although CHRW does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 7.94 |
ROIC/WACC2.56
WACC8.49%
2.3 Liquidity
A Current Ratio of 1.31 indicates that CHRW should not have too much problems paying its short term obligations.
CHRW's Current ratio of 1.31 is in line compared to the rest of the industry. CHRW outperforms 40.91% of its industry peers.
CHRW has a Quick Ratio of 1.31. This is a normal value and indicates that CHRW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CHRW (1.31) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.76% over the past year.
The Earnings Per Share has been growing slightly by 1.49% on average over the past years.
The Revenue has decreased by -2.55% in the past year.
Measured over the past years, CHRW shows a small growth in Revenue. The Revenue has been growing by 2.97% on average per year.
EPS 1Y (TTM)47.76%
EPS 3Y-10.66%
EPS 5Y1.49%
EPS Q2Q%12.17%
Revenue 1Y (TTM)-2.55%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-7.74%
3.2 Future
The Earnings Per Share is expected to grow by 7.76% on average over the next years.
Based on estimates for the next years, CHRW will show a small growth in Revenue. The Revenue will grow by 1.70% on average per year.
EPS Next Y11.55%
EPS Next 2Y12.36%
EPS Next 3Y11.57%
EPS Next 5Y7.76%
Revenue Next Year-8.02%
Revenue Next 2Y-2.06%
Revenue Next 3Y0.22%
Revenue Next 5Y1.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.29, CHRW can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CHRW is on the same level as its industry peers.
CHRW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.24.
CHRW is valuated rather expensively with a Price/Forward Earnings ratio of 22.03.
Based on the Price/Forward Earnings ratio, CHRW is valued a bit cheaper than 68.18% of the companies in the same industry.
CHRW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.29 | ||
| Fwd PE | 22.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHRW is on the same level as its industry peers.
68.18% of the companies in the same industry are more expensive than CHRW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.05 | ||
| EV/EBITDA | 17.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CHRW may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)17.02
EPS Next 2Y12.36%
EPS Next 3Y11.57%
5. Dividend
5.1 Amount
CHRW has a Yearly Dividend Yield of 2.02%. Purely for dividend investing, there may be better candidates out there.
CHRW's Dividend Yield is rather good when compared to the industry average which is at 3.79. CHRW pays more dividend than 81.82% of the companies in the same industry.
CHRW's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
The dividend of CHRW has a limited annual growth rate of 4.17%.
CHRW has been paying a dividend for at least 10 years, so it has a reliable track record.
CHRW has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.17%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CHRW pays out 56.12% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CHRW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP56.12%
EPS Next 2Y12.36%
EPS Next 3Y11.57%
125.18
+2.38 (+1.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners98.21%
Inst Owner Change0.97%
Ins Owners0.81%
Ins Owner Change-1.1%
Market Cap14.78B
Analysts75.15
Price Target117.09 (-6.46%)
Short Float %5.88%
Short Ratio5.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend2.5
Dividend Growth(5Y)4.17%
DP56.12%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.1%
Min EPS beat(2)9.07%
Max EPS beat(2)9.13%
EPS beat(4)4
Avg EPS beat(4)8.6%
Min EPS beat(4)6.62%
Max EPS beat(4)9.57%
EPS beat(8)7
Avg EPS beat(8)6.07%
EPS beat(12)7
Avg EPS beat(12)-0.35%
EPS beat(16)10
Avg EPS beat(16)4.84%
Revenue beat(2)0
Avg Revenue beat(2)-4.82%
Min Revenue beat(2)-6.93%
Max Revenue beat(2)-2.72%
Revenue beat(4)1
Avg Revenue beat(4)-4.11%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)0.6%
Revenue beat(8)2
Avg Revenue beat(8)-3.15%
Revenue beat(12)2
Avg Revenue beat(12)-4.82%
Revenue beat(16)5
Avg Revenue beat(16)-1.98%
PT rev (1m)4%
PT rev (3m)4.83%
EPS NQ rev (1m)6.16%
EPS NQ rev (3m)-0.66%
EPS NY rev (1m)4.82%
EPS NY rev (3m)4.38%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-7.1%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.29 | ||
| Fwd PE | 22.03 | ||
| P/S | 0.87 | ||
| P/FCF | 23.05 | ||
| P/OCF | 20.82 | ||
| P/B | 8.28 | ||
| P/tB | 46.21 | ||
| EV/EBITDA | 17.2 |
EPS(TTM)4.95
EY3.95%
EPS(NY)5.68
Fwd EY4.54%
FCF(TTM)5.43
FCFY4.34%
OCF(TTM)6.01
OCFY4.8%
SpS144.06
BVpS15.11
TBVpS2.71
PEG (NY)2.19
PEG (5Y)17.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.04% | ||
| ROE | 29.94% | ||
| ROCE | 27.43% | ||
| ROIC | 21.76% | ||
| ROICexc | 22.94% | ||
| ROICexgc | 46.45% | ||
| OM | 4.88% | ||
| PM (TTM) | 3.14% | ||
| GM | 16.38% | ||
| FCFM | 3.77% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)23.45%
ROIC(5y)21.78%
ROICexc(3y)25.06%
ROICexc(5y)23.32%
ROICexgc(3y)62.88%
ROICexgc(5y)54.03%
ROCE(3y)30.15%
ROCE(5y)28.01%
ROICexcg growth 3Y0.83%
ROICexcg growth 5Y-1.15%
ROICexc growth 3Y-4.51%
ROICexc growth 5Y-1.82%
OM growth 3Y-2.93%
OM growth 5Y-3.65%
PM growth 3Y-10.41%
PM growth 5Y-6.96%
GM growth 3Y4.57%
GM growth 5Y-1.58%
F-Score8
Asset Turnover3.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 69.6% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.45% | ||
| Profit Quality | 120.04% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 7.94 |
F-Score8
WACC8.49%
ROIC/WACC2.56
Cap/Depr(3y)99.97%
Cap/Depr(5y)86.13%
Cap/Sales(3y)0.47%
Cap/Sales(5y)0.41%
Profit Quality(3y)150.71%
Profit Quality(5y)108.59%
High Growth Momentum
Growth
EPS 1Y (TTM)47.76%
EPS 3Y-10.66%
EPS 5Y1.49%
EPS Q2Q%12.17%
EPS Next Y11.55%
EPS Next 2Y12.36%
EPS Next 3Y11.57%
EPS Next 5Y7.76%
Revenue 1Y (TTM)-2.55%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-7.74%
Revenue Next Year-8.02%
Revenue Next 2Y-2.06%
Revenue Next 3Y0.22%
Revenue Next 5Y1.7%
EBIT growth 1Y49.86%
EBIT growth 3Y-11.13%
EBIT growth 5Y-0.79%
EBIT Next Year20.5%
EBIT Next 3Y11.34%
EBIT Next 5Y6.83%
FCF growth 1Y-63.72%
FCF growth 3Y160.19%
FCF growth 5Y-11.11%
OCF growth 1Y-62.19%
OCF growth 3Y73.8%
OCF growth 5Y-9.8%